Real estate investors purchased a total of 87,500 U.S. homes in the second quarter of 2022, up 11% from Q1 and 5.9% higher than Q2 2021. Though investor purchases have fallen from the all-time high of 93,700 in the third quarter of 2021, investors are still buying far more homes than they were pre-pandemic, and that trend could continue throughout a market slowdown, Redfin reports.
Softening homebuyer competition has presented investors with an opportunity to purchase for-sale properties that can be turned into rentals. A cooling market has caused a slowdown in rent growth, but as more would-be buyers are priced out of home purchases, rental demand remains strong in most popular metros across the U.S.
But the fact that investors are purchasing fewer homes than they were at the height of the pandemic illustrates that other investors–likely those who flip homes for a quick profit rather than rent them out– are shying away amid economic uncertainty and the daunting possibility of buying high and selling low. The typical home investors bought in the second quarter cost a record $474,000, a big jump from $427,000 a quarter earlier and $423,000 a year earlier.
Advertisement
Related Stories
Market Data + Trends
Vacation and Investment Home Market Insights
A recent report finds beach homes to be the most sought-after vacation-home type and that the investment potential of a second home is an important factor in the purchasing decision
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Sales
What the NAR Commissions Settlement Means for Home Builders
The legal settlement will improve transparency during the home sales process, mitigate predatory practices, and help preserve profitability for home builders